Bharti-MTN deal to add new dimension to South-South relation
Press Trust of India / New Delhi May 26, 2009, 16:04 IST
Finance Minister Pranab Mukherjee today said the proposed $23 billion Bharti-MTN deal will add a new dimension to South-South cooperation.
"It is a welcome move and I welcome this. It has added a new dimension to our South-South cooperation," Mukherjee said in an interview to private television news channel CNBC TV18.
Yesterday, Bharti announced that it has opened talks for acquiring 49 per cent shareholding in MTN and, in turn, MTN and its shareholders would acquire about 36 per cent economic interest in Bharti, of which 25 per cent would be held by MTN with the remainder by MTN shareholders.
The two companies signed an agreement to hold exclusive talks for a deal that could include $10 billion in cash and $13 billion in shares and see emergence of a combined entity of $20 billion in terms of revenue and 200 billion subscribers globally.
As per the exploring agreement, MTN too would acquire 36 per cent economic interest in Bharti as part of the deal.
"We see real power in the combination and we will work hard to unleash it for all our shareholders. This opportunity also represents a first of its kind in developing an Indian-African initiative that would serve as a shining example of South-South cooperation," Bharti CMD Sunil Bharti Mittal had said.
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